Vident Core U.S. Equity Fund (VUSE)

Overview

The Vident Core U.S. Equity Fund seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Vident Core U.S. Equity Index. The fund invests primarily in a broad range of U.S. equities, utilizing a rules-based approach that aims to identify companies exhibiting financial strength and stability.

Reputation and Reliability

Vident Investment Advisory is a relatively smaller ETF issuer. Their reputation is still developing, with a focus on rules-based and factor-driven strategies.

Management Expertise

Vident's management team has experience in quantitative investing and index construction.

Goal

To track the performance, before fees and expenses, of the Vident Core U.S. Equity Index.

Investment Approach and Strategy

Strategy: The fund tracks a proprietary index, the Vident Core U.S. Equity Index. This index uses a rules-based methodology to select and weight companies based on factors related to financial strength and stability.

Composition The ETF holds a diversified portfolio of U.S. equities across various sectors.

Market Share: Vident Core U.S. Equity Fund has a small market share compared to large, established broad market ETFs.

Total Net Assets (AUM): 253480385

Key Competitors

• SPY
• IVV
• VTI
• QQQ

Competitive Landscape

The ETF industry is dominated by a few large players offering broad market exposure. Vident Core U.S. Equity Fund distinguishes itself through its rules-based, factor-driven approach. Its advantage lies in potentially outperforming the broad market through its specific selection criteria. Disadvantages include potentially higher tracking error compared to simple market-cap weighted indexes and higher fees.

Historical Performance: Historical performance data is available from the fund's fact sheet and other financial data providers. This data needs to be accessed via external resources.

Benchmark Comparison: The ETF's performance should be compared to the Vident Core U.S. Equity Index to assess tracking efficiency.

Expense Ratio: 0.29

Average Trading Volume

The ETF's average trading volume is moderate. Liquidity might be less than some of the larger broader market ETFs.

Bid-Ask Spread

The bid-ask spread is typically relatively small, but can widen during periods of market volatility.

Market Environment Factors

Economic growth, interest rates, and investor sentiment can all impact the fund's performance. Sector-specific trends and overall market volatility also play a significant role.

Growth Trajectory

The fund's growth is dependent on its ability to attract assets and maintain its performance relative to its benchmark. Any changes to the index methodology or holdings could affect its growth trajectory.

Competitive Edge

Vident Core U.S. Equity Fund offers a unique approach through its rules-based methodology focused on financial strength and stability. This factor-driven strategy differentiates it from simple market-cap weighted ETFs. The fund's focus may appeal to investors seeking a more selective exposure to U.S. equities. It aims to provide potentially better risk-adjusted returns through its specific stock selection criteria.

Volatility

The fund's volatility will depend on the volatility of its underlying holdings. It may exhibit slightly lower volatility than broader market ETFs due to its focus on financially stable companies.

Market Risk

The fund is subject to general market risk, as its underlying assets are U.S. equities. Economic downturns, geopolitical events, and changes in investor sentiment can all negatively impact the fund's performance.

Ideal Investor Profile

The ideal investor is one who seeks U.S. equity exposure with a focus on financial strength and stability, and who is comfortable with a rules-based investment approach.

Market Risk

This fund is suitable for long-term investors seeking potentially enhanced risk-adjusted returns within their U.S. equity allocation. It may not be ideal for active traders due to the more deliberate investment strategy.

The Vident Core U.S. Equity Fund offers investors a rules-based approach to U.S. equity investing, focusing on companies exhibiting financial strength and stability. While its expense ratio is relatively low, its market share is smaller compared to major broad-market ETFs. The fund's competitive advantage lies in its unique selection methodology, which aims to deliver potentially superior risk-adjusted returns. This ETF would be suitable for investors seeking a factor-based U.S. equity allocation for long-term growth, but one should compare expense ratio, AUM and tracking error with competitors.

Data Sources:

• Vident Investment Advisory Website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.